Bitcoin's recent surge towards a new record high and increased inflows into ETFs are diverting attention from a concerning trend in the wider cryptocurrency market.

Key players in the industry are experiencing a decline in interest for various digital assets, leading to significant job cuts.

For example, Kraken, a well-known crypto exchange, has announced layoffs affecting around 15% of its workforce.

Similarly, Coinbase Inc. reported earnings that fell short of market expectations, highlighting the ongoing challenges faced by the sector.

Additionally, Consensys, a software developer, has also implemented layoffs as the market grapples with changing investor sentiment.